No the bitcoin is secured by a funding transaction on layer 1, layer 2 operates with some concessions, but allows movement of liquidity for lower fees with high confidence that you will not be cheated, and an array of layer 3 solutions have various other tradeoffs and benefits. Layer 3 is where we will select our bitcoin-secured financial products and Layer 2 will be the common commodity rails allowing interoperability between layer 3s, and layer 1 will be the exit to final settlement.